It was reported on October 15, that GC Investments LLC, 10% Owner at Altair Engineering ALTR executed a significant insider sell, according to an SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that LLC sold 100,000 shares of Altair Engineering. The total transaction amounted to $9,523,390.

During Tuesday’s morning session, Altair Engineering shares down by 0.0%, currently priced at $95.5.

Unveiling the Story Behind Altair Engineering

Altair Engineering Inc is a provider of enterprise-class engineering software enabling origination of the entire product lifecycle from concept design to in-service operation. The integrated suite of software provided by the company optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, system modeling, and embedded systems. It operates through two segments: Software which includes the portfolio of software products such as solvers and optimization technology products, modeling and visualization tools, industrial and concept design tools, and others; and Client Engineering Services which provides client engineering services to support customers. Majority of its revenue comes from the software segment.

Altair Engineering: A Financial Overview

Revenue Growth: Altair Engineering’s remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 5.41%. This signifies a substantial increase in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Navigating Financial Profits:

• Gross Margin: The company excels with a remarkable gross margin of 79.49%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Altair Engineering’s EPS is below the industry average. The company faced challenges with a current EPS of -0.06. This suggests a potential decline in earnings.

Debt Management: Altair Engineering’s debt-to-equity ratio is below the industry average. With a ratio of 0.33, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Financial Valuation:

• Price to Earnings (P/E) Ratio: Altair Engineering’s current Price to Earnings (P/E) ratio of 298.62 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 12.84 is above industry norms, reflecting an elevated valuation for Altair Engineering’s stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Altair Engineering’s EV/EBITDA ratio, surpassing industry averages at 95.97, positions it with an above-average valuation in the market.

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Uncovering the Importance of Insider Activity

It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Transaction Codes To Focus On

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Altair Engineering’s Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga’s automated content engine and reviewed by an editor.